New Delhi

India’s automotive sector recorded 33 deals worth $1.7 billion in Q3 2026, up from 20 transactions valued at $717 million in the previous quarter, driven by a rise in mergers and acquisitions (M&A), private capital deployment and renewed public market fundraising, according to a report released on Wednesday.

The report from Grant Thornton Bharat showed that deal volumes rose 65 per cent quarter on quarter and values increased 131 per cent. Electrification remained the dominant investment theme with capital flowing across EV manufacturers, battery technologies, charging infrastructure, mobility platforms and automotive technology businesses.

Investors continued to favour companies with scalable business models, differentiated technology and strong positioning within India's evolving mobility ecosystem, the report noted.

Meanwhile, M&A and private equity or venture capital activity accounted for 28 transactions worth $808 million, the report added.

The quarter reflected sustained investor confidence in long-term mobility and electrification opportunities despite a selective funding environment.

“The automotive sector is moving into a new investment cycle driven by the transformation of mobility itself. Capital is no longer concentrated only on vehicle manufacturers but is increasingly being deployed across the broader ecosystem, including batteries, charging infrastructure, automotive technology and mobility platforms," said Saket Mehra, Partner, Automotive & EV Industry Leader, Grant Thornton Bharat.

The trend indicated that investors are backing the infrastructure and capabilities needed to support the next phase of mobility growth in India, according to Mehra.

Moreover, M&A activity recorded 12 transactions worth $389 million in Q3 2026, compared with five deals valued at $138 million in the previous quarter. While domestic transactions remained the primary driver of activity, accounting for 75 per cent of deal volumes and 87 per cent of transaction value.

Strategic investments were concentrated across EV manufacturers, mobility platforms, automotive technology businesses and component manufacturers, reflecting growing emphasis on capability acquisition and long-term positioning within the mobility ecosystem.

PE/VC activity improved to 16 transactions worth $419 million, compared with 13 transactions valued at $341 million in Q2 2026.

Both volumes and values increased 23 per cent quarter-on-quarter, driven by investments in EV manufacturers, mobility platforms, battery technologies and charging infrastructure providers.